$50 million loss for WNBA despite Caitlin Clark’s impact, needs NBA to survive

WNBA is setting records for attendance, viewership as well as sales, but will not see the money this year.

$50 million loss for WNBA despite Caitlin Clark’s impact, needs NBA to survive

WNBA set to lose $50 million this year despite Caitlin Clark's impact

The league has received unprecedented attention since Caitlin Clark declared for the WNBA draft. If it continues to gain momentum, that attention could propel the league to new revenue levels. That increased revenue could help pay players better than the paltry levels today. Until now, it looks like the league is on course to do extremely well. However, reports suggest otherwise.

The Washington Post’s Ben Strauss dived deep into the negotiations the NBA is currently partaking in. In between the research, he spoke with two anonymous WNBA executives. They indicated the WNBA could see a loss of as much as $50 million despite the rise of Caitlin Clark. As such, Strauss made a bold remark about the future of WNBA.

This year, the WNBA and its teams still are expected to lose around $50 million. The truth is, this league would be hard-pressed to exist without the NBA.
Ben Strauss via The Washington Post
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The report from Strauss indicates one important matter. It seems the WNBA will not be able to break even this year. That is despite Commissioner Cathy Engelbert announcing that the league keeps breaking records in every category.

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The problem for the league this year is that the current media rights deal will not be enough to cover the costs. That is, even counting the millions coming in from tickets and merchandise sales. Broadcasters will make money, but that money will not flow into the WNBA this year or the next.

The current deal will only conclude after next season. Therefore, the WNBA has to wait until the NBA finalizes the media rights deals. Only then can they benefit from the windfall.

NBA to finance the WNBA’s future

The NBA owns 60% of the WNBA. That is after recent stake sales to Nike and others. This means the league and commissioner Cathy Engelbert report to Adam Silver. It should also be noted that the media rights deal the NBA is negotiating with includes the funds that will go to the WNBA. Although no figure is being touted, it is expected to mirror the increment the NBA is about to get.

That is, the NBA is looking to go up from $2.7 to $7 billion per year with the new deal. If that happens, the WNBA could get a similar boost. It will give the teams more money than before. They could use it to pay for better players, coaches, and training staff. But the NBA, just like any other holding company would like to see the work being put in to draw the fans and increase revenue.

If Caitlin Clark, Angel Reese, and others can continue to push the league to new levels, then everyone may benefit from the new NBA TV deal. So far, Adam Silver and the NBA have been covering the losses. The WNBA should help the league boost its revenue once the new deal kicks in. As such, it will benefit everyone involved.

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